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Galp Energia
Business and Financial Review • Jul 17, 2023
1908_iss_2023-07-17_16925287-29f3-4290-bf58-1c29f9fe793e.pdf
Business and Financial Review
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2Q23 Trading Update
The information below aims to provide the key macroeconomic, operating and trading conditions experienced by Galp during the second quarter of 2023. All data referred to below is currently provisional and may differ from the final figures.
Galp's 2Q23 results will be published on July 31, before the opening of Euronext Lisbon, together with a management presentation. On that day, the Company will hold an analysts' conference call at 14:00 (Lisbon/London time). Further details can be found at the end of this release.
Upstream
| 2Q22 | 1Q23 | 2Q23 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Working interest production (kboepd) | 119.0 | 120.3 | 117.1 | (2%) | (3%) |
| Oil (%) | 90% | 84% | 84% | (6%) | 0% |
| Brazil (kboepd) | 107.4 | 114.8 | 111.6 | 4% | (3%) |
| Mozambique (kboepd) | - | 5.4 | 5.5 | n.m. | 1% |
| Angola (kbpd) | 11.6 | - | - | n.m. | n.m. |
| Net entitlement production (kboepd) | 117.6 | 120.1 | 116.9 | (1%) | (3%) |
• Operating performance in Brazil reflecting lower production QoQ, due to increased planned maintenance in the period. In Mozambique, Coral FLNG commissioning continued, with a planned stoppage performed during the quarter.
• Brazilian temporary levy on oil exports ended on June 30th, with an estimated impact of c.€50 m during the quarter, to be booked as an RCA tax item.
Renewables & New Businesses
| 2Q22 | 1Q23 | 2Q23 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Equity to Galp | |||||
| Renewable installed capacity1 (GW) |
0.9 | 1.4 | 1.4 | 56% | - |
| Renewable generation (GWh) | 515 | 448 | 775 | 50% | 73% |
| Galp realised sale price (EUR/MWh) | 151 | 109 | 64 | (58%) | (41%) |
1 Installed capacity at the end of the period.
• Renewable energy generation up QoQ, reflecting seasonally higher irradiation during the period.
• Realised sale price down QoQ, following the Iberian pool price and solar power market conditions.
Industrial & Midstream
| 2Q22 | 1Q23 | 2Q23 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Raw materials processed (mboe) | 22.9 | 19.6 | 21.7 | (5%) | 11% |
| Galp refining margin (USD/boe) | 20.1 | 14.3 | 7.7 | (62%) | (46%) |
| Oil products supply1 (mton) |
4.0 | 3.6 | 3.9 | (3%) | 10% |
| NG/LNG supply & trading volumes1 (TWh) |
14.0 | 10.7 | 12.7 | (9%) | 19% |
| Trading (TWh) | 6.0 | 3.9 | 5.7 | (4%) | 47% |
| Sales of electricity from cogeneration (GWh) | 174 | 162 | 158 | (9%) | (2%) |
1 Includes volumes sold to the Commercial segment.
• Refining raw materials processed increased QoQ, reflecting the return to normalised operating conditions after the planned maintenance activities performed during 1Q23 (hydrocracker).
- Refining margin lower QoQ, following the lower international oil products' cracks.
- NG/LNG volumes increased QoQ, on the back of improved sourcing and trading flexibility.
2Q23 Trading Update July 17, 2023
Commercial
| 2Q22 | 1Q23 | 2Q23 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Oil products - client sales (mton) | 1.9 | 1.7 | 1.8 | (6%) | 3% |
| Natural gas sales - client sales (GWh) | 5,006 | 3,722 | 3,282 | (34%) | (12%) |
| Electricity - client sales (GWh) | 1,088 | 933 | 899 | (17%) | (4%) |
• Oil products sales improved QoQ, whilst decreasing YoY, considering a more pressured environment in some B2B segments in Iberia and in Africa.
• Natural gas and electricity sales mostly reflecting lower Iberian demand and volumes sold in the B2B segment.
Market Indicators
| 2Q22 | 1Q23 | 2Q23 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Exchange rate (EUR/USD) | 1.06 | 1.07 | 1.09 | 2% | 1% |
| Dated Brent price (USD/bbl) | 113.9 | 81.2 | 78.1 | (31%) | (4%) |
| Dutch TTF natural gas price (EUR/MWh) | 95.6 | 54.1 | 35.1 | (63%) | (35%) |
| Iberian MIBGAS natural gas price (EUR/MWh) | 88.4 | 52.2 | 32.7 | (63%) | (37%) |
| Iberian power baseload price1 (EUR/MWh) |
182.8 | 96.4 | 80.3 | (56%) | (17%) |
| Iberian solar captured price (EUR/MWh) | 160.8 | 84.4 | 60.7 | (62%) | (28%) |
Source: Platts/MIBGAS/Bloomberg/OMIE/REE.
1 The Iberian power price is based on the Spanish power pool price published by the Iberian Energy Market Operator (OMIE)
Company collected consensus
The Company's collected consensus for quarterly earnings is scheduled to be opened for submission between July 17 and July 21 and will be published on July 24.
Results presentation details
Webcast
• https://edge.media-server.com/mmc/p/8wwpqkzf
Conference call registration
• https://register.vevent.com/register/BI8f688ce8dd3345c58dd0b505601f57a8
Galp Energia, SGPS, S.A.
Investor Relations:
Otelo Ruivo, Director João G. Pereira Teresa Toscano Tommaso Fornaciari César Teixeira
Contacts: Tel: +351 21 724 08 66 Fax: +351 21 724 29 65
Address: Rua Tomás da Fonseca, Torre A, 1600-209 Lisbon, Portugal Website: www.galp.com/corp/en/ Email: [email protected]
Reuters: GALP.LS Bloomberg: GALP PL
This document may include forward-looking statements. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations that are based on management's expectations and assumptions as of the date they are disclosed and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such those statements. Accordingly, neither Galp nor any other person can assure that its future results, performance or events will meet those expectations, nor assume any responsibility for the accuracy and completeness of the forward-looking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Galp to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections, and assumptions. These forward-looking statements may generally be identified by the use of the future, gerund or conditional tense or the use of terms and phrases such as "aim", "ambition", "anticipate", "believe", "consider", "could", "develop", "envision", "estimate", "expect", "goals", "intend", "may'', "objectives", "outlook", "plan", "potential", "probably", "project", "pursue", "risks", "schedule", "seek", "should", "target", "think", "will" or the negative of these terms and similar terminology. This document may include data and information provided by third parties, which are not publicly available. Such data and information should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by those third parties in writing. To the fullest extent permitted by law, those third parties accept no responsibility for your use of such data and information except as specified in a written agreement you may have entered into with those third parties for the provision of such data and information. Galp and its respective representatives, agents, employees or advisers do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this document to reflect any change in events, conditions or circumstances. This document does not constitute investment advice nor forms part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or otherwise acquire securities of Galp or any of its subsidiaries or affiliates in any jurisdiction or an inducement to engage in any investment activity in any jurisdiction.